Correlation Between Columbia Sportswear and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Columbia Sportswear and Fidelity National at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Columbia Sportswear and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Sportswear and Fidelity National Information, you can compare the effects of market volatilities on Columbia Sportswear and Fidelity National and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Columbia Sportswear with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Sportswear and Fidelity National.
Diversification Opportunities for Columbia Sportswear and Fidelity National
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Columbia and Fidelity is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Sportswear and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Columbia Sportswear is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Columbia Sportswear are associated (or correlated) with Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Columbia Sportswear i.e., Columbia Sportswear and Fidelity National go up and down completely randomly.
Pair Corralation between Columbia Sportswear and Fidelity National
Assuming the 90 days horizon Columbia Sportswear is expected to generate 1.53 times more return on investment than Fidelity National. However, Columbia Sportswear is 1.53 times more volatile than Fidelity National Information. It trades about 0.36 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.1 per unit of risk. If you would invest 6,923 in Columbia Sportswear on September 1, 2024 and sell it today you would earn a total of 1,277 from holding Columbia Sportswear or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Columbia Sportswear vs. Fidelity National Information
Performance |
| Timeline |
| Columbia Sportswear |
| Fidelity National |
Columbia Sportswear and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Sportswear and Fidelity National
The main advantage of trading using opposite Columbia Sportswear and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Sportswear position performs unexpectedly, Fidelity National can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity National will offset losses from the drop in Fidelity National's long position.| Columbia Sportswear vs. Ralph Lauren | Columbia Sportswear vs. Superior Plus Corp | Columbia Sportswear vs. NMI Holdings | Columbia Sportswear vs. Origin Agritech |
| Fidelity National vs. Fukuyama Transporting Co | Fidelity National vs. DICKS Sporting Goods | Fidelity National vs. ARROW ELECTRONICS | Fidelity National vs. KIMBALL ELECTRONICS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |